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Help please and thank you Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (20 Ibs. e

image text in transcribed Help please and thank you

Sedona Company set the following standard costs for one unit of its product for 2017 Direct material (20 Ibs. e $2.50 per Ib.) Direct labor actory $ 50.00 22 40 0 hrs.e $22.00 per hr.) 4.00 riable per hr.) Factory fixed overhead (10 hrs. $1.60 per hr.) 16.00 $326.00 Standard cost The $5.60 ($4.00 $1.60) total overhead rate per direct labor hour is based on an expected operating level equal to 75% of the factory's capacity of 50,000 units per month. The following monthly flexible budget information is also available. Operating Levels (% of capacity) Flexible Budget Budgeted output (units) Budgeted labor (standard hours) Budgeted overhead (dollars ) Variable overhead Fixed overhead 708 758 80% 35,000 350,000 40,000 400,000 37,500 375,000 $1,500,000 600,000 $1,600,000 600,000 $1,400,000 600,000 Total overhead $2,000,000 $2,100,000 $2,200,000 During the current month, the company operated at 70% of capacity, employees worked 340,000 hours, and the following actual overhead costs were incurred $1,375,000 628,600 Variable overhead costs Fixed overhead costs $2,003,600 Total overhead costs AH Actual Hours SH = Standard Hours AVR = Actual Variable Rate SVR = Standard Variable Rate SFR = Standard Fixed Rate (1) Compute the predetermined overhead application rate per hour for variable overhead, fixed overhead, and total overhead at 75% of capacity Predetermined OH Rate Variable overhead costs Fixed overhead costs Total overhead costs (2) Compute the total variable and total fixed overhead variances and classify each as favorable or unfavorable. At 70% of Operating Capacity------- Standard DL Hours Overhead Costs Actual Results Variance Fav./Unf. Applied Variable overhead costs Fixed overhead costs Total overhead costs

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